Non-Oil Sector Drives Nigeria’s Tax Revenue to N17.4 Trillion
Story writte by Okaofr joseph AUGUST 29,2025
The surge reflects government efforts to diversify the economy away from crude oil and expand the tax net in key industries such as telecommunications, banking, manufacturing, and digital services.
FIRS Chairman, Zacch Adedeji, said the achievement demonstrates Nigeria’s progress in building a more sustainable revenue base. “Our strategy focuses on technology-driven tax collection and reducing leakages. The result is improved compliance and stronger contributions from the non-oil sector,” he noted.
Oil revenue, traditionally Nigeria’s mainstay, contributed less than 30 percent of the total tax inflows, underscoring the growing importance of other sectors.
Analysts say the performance aligns with the federal government’s fiscal reforms and shows resilience despite global economic headwinds. They also stress that sustaining this momentum will require addressing tax evasion, harmonising multiple tax regimes, and supporting small businesses to stay compliant.
With oil production facing volatility, experts believe strengthening non-oil tax revenue is crucial for funding Nigeria’s infrastructure, healthcare, and education priorities.
